20060118Application Part V.pdf

Exhibit K
MR-2: Calls Answered within Twenty Seconds - Interconnect Repair Center
GA-1 has two sub-measurements: GA-, and GA-1 D. PO-1 shall have two sub-
measurements: PO-1 A and PO-1 B. PO-1 A and PO-1B shall have their transaction
types aggregated together.
For these measurements, Owest will make a Tier 2 payment based upon monthly
performance results according to Table 5: Tier 2 Per Measurement Payments to
State Funds.
TABLE 5: TIER-2 PER MEASUREMENT PAYMENTS TO STATE FUNDS
Measuremen Performance State Payment 14 State Payment
GA-1 ,3,4,1 % or lower 000 $14 000
:::-1% to $10 000 $140 000
:::-3% to $20 000 $280 000
:::-5%$30 000 $420,000
PO-2 sec. Or less $1 ,000 $14 000
:::-2 sec.000 $70 000
sec.
:::-5 sec. to 10 $10 000 $140 000
sec.
:::-10 sec.$15 000 $210 000
OP-2/MR-1 % or lower 000 $14 000
:::-1% to 000 $70 000
:::-3% to $10 000 $140 000
:::-5%$15 000 $210 000
Step by Step Calculation of Monthly Tier 1 Payments to CLEC
Application of the Critical Z-Values: Owest shall identify the Tier 1 parity
performance measurements that measure the service provided to CLEC by Owest for
the month in question and the critical z-value from Table 1 in section 5.0 that shall be
used for purposes of statistical testing for each particular performance measurement.
The statistical testing procedures described in section 4.0 shall be applied. For the
purpose of determining the critical z-values, each disaggregated category of a
performance measurement is treated as a separate sub-measurement. The critical
z-value to be applied is determined by the CLEC volume at each level of
disaggregation or sub-measurement.
Performance Measurements for which Tier 1 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
Qwest Idaho SGA T Third Revised, Fifth Amended Exhibit K, November 30, 2004 - 8-
Exhibit K
8.2.1 Step 1: . For each performance measurement , the average or the mean that
would yield the critical z-value shall be calculated. The same denominator as the one
used in calculating the z-statistic for the measurement shall be used. (For
benchmark measurements, the benchmark value shall be used.
2 Step 2: The percentage differences between the actual averages and the
calculated averages shall be calculated. The calculation is % diff = (CLEC result
Calculated Value)/Calculated Value. The percent difference shall be capped at a
maximum of 100%. In all calculations of percent differences in sections 8.0 and 9.
the calculated percent differences is capped at 100%.
2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the percentage calculated in the previous step and the per
occurrence dollar amounts from the Tier 1 Payment Table shall determine the
payment to the CLEC for each non-conforming performance measurement.
Performance Measurements that are Percentages:
1 Step 1: For each performance measurement, the percentage that would yield
the critical z-value shall be calculated. The same denominator as the one used in
calculating the z- statistic for the measurement shall be used. (For benchmark
measurements , the benchmark value shall be used.
2 Step 2: The difference between the actual percentages for the CLEC and the
calculated percentages shall be determined.
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference in percentage calculated in the previous step,
and the per occurrence dollar amount taken from the Tier 1 Payment Table, to
determine the payment to the CLEC for each non-conforming performance
measurement.
8.2.Performance Measurements that are Ratios or Proportions:
1 Step 1: For each performance measurement the ratio that would yield the
critical z-value shall be calculated. The same denominator as the one used
calculating the z-statistic for the measurement shall be used. (For benchmark
measurements, the benchmark value shall be used.
2 Step 2: The absolute difference between the actual rate for the CLEC and
the calculated rate shall be determined.
3 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step, and the per
occurrence dollar amount taken from the Tier 1 Payment Table, to determine the
payment to the CLEC for each non-conforming performance measurement.
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 9-
Exhibit K
Performance Measurements for which Tier 1 Payment is Per Measure:
For each performance measurement where Owest fails to meet the standard
the payment to the CLEC shall be the dollar amount shown on the "per measure
portion of Table 2: Tier 1 Payments to CLEC.
Step by Step Calculation of Monthly Tier 2 Payments to State Funds
Application of the Critical Z-Value: Owest shall identify the Tier 2 parity
performance measurements that measure the service provided by Owest to all
CLECs for the month in question. The statistical testing procedures described in
section 4.0 shall be applied; except that a 1.645 critical z-value shall be used for Tier
parity measurements that have Tier 1 counterparts For Tier 2 parity
measurements that do not have Tier 1 counterparts, the statistical testing procedures
described section 4.0 shall be applied using the critical z-values identified in section
To determine if Tier 2 payments for performance measurements listed on
Attachment 1 shall be made in the current month, the following shall be determined.
For Tier 2 measurements that have Tier 1 counterparts, it shall be determined
whether Owest missed the performance standard for three consecutive months , or if
Owest has missed the standard in any two out of three consecutive months for the 12
month period and for an additional two consecutive months. For Tier 2
measurements that do not have Tier 1 counterparts , it shall be determined whether
Owest missed the performance standard for a single month. If any of these
conditions are met and there are at least 10 data points for the measurement in each
month , a Tier 2 payment will be calculated and paid as described below and will
continue in each succeeding month until Owest's performance meets the applicable
standard. For Tier 2 measures that have Tier 1 counterparts, the most recent three
months of nonconforming performance data that results in payment liability shall be
averaged to determine payment.
Performance Measurements for which Tier 2 Payment is Per Occurrence:
Performance Measurements that are Averages or Means:
1 Step 1: The monthly average or the mean for each performance
measurement that would yield the critical z-value for each month shall be calculated.
The same denominator as the one used in calculating the z-statistic for the
measurement shall be used. (For benchmark measurements, the benchmark value
shall be used.
2 Step 2: The percentage difference between the actual averages and the
calculated averages for the relevant month(s) shall be calculated. The calculation
for parity measurements is % diff = (actual average - calculated average)/calculated
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30,2004 - 10-
Exhibit K
average. The percent difference shall be capped at a maximum of 100%. In all
calculations of percent differences in section 8.0 and section 9., the calculated
percent difference is capped at 100%.
3 Step 3: For each performance measurement, the total number of data points
for the relevant month(s) shall be multiplied by the percentage calculated in the
previous step. The amount (average amount, if more than one month) (rounded to
the nearest integer) is then multiplied by the result of the per occurrence dollar
amount taken from the Tier 2 Payment Table to determine the payment to the State
for each non-conforming performance measurement.
Performance Measurements that are Percentages:
Step 1: For each performance measurement, the monthly percentage that
would yield the critical z-value for each month shall be calculated. The same
denominator as the one used in calculating the z-statistic for the measurement shall
be used. (For benchmark measurements , the benchmark value shall be used.
2 Step 2: The difference between the actual percentages and the calculated
percentages for the relevant month(s) shall be calculated. The calculation for parity
measurement is diff = (CLEC result - calculated percentage). This formula shall be
applicable where a high value is indicative of poor performance. The formula shall be
reversed where high performance is indicative of good performance.
3 Step 3: For each performance measurement, the total number of data points
for the relevant month(s) shall be multiplied by the difference in percentage
calculated in the previous step. The amount (average amount, if more than one
month)(rounded to the nearest integer) is then multiplied by the result of the per
occurrence dollar amounts taken from the Tier 2 Payment Table to determine the
payment to the State.
9.4 Performance Measurements that are Ratios or Proportions:
Step 1: For each performance measurement, the ratio that would yield the
critical z-value for each month shall be calculated. The same denominator as the
one used in calculating the z-statistic for the measurement shall be used. (For
benchmark measurements, the benchmark value shall be used.
9.4.1 Step 2: The difference between the actual rate for the CLEC and the
calculated rate for the relevant month(s) shall be calculated. The calculation is: diff =
(CLEC rate calculated rate). This formula shall apply where a high value is
indicative of poor performance. The formula shall be reversed where high
performance is indicative of good performance.
9.4.2 Step 3: For each performance measurement, the total number of data points
shall be multiplied by the difference calculated in the previous step for each month.
Qwest Idaho SGA T Third Revised, Fifth Amended Exhibit K, November 30, 2004 - 11-
Exhibit K
The amount (average amount, if more than one month)(rounded to the nearest
integer) is then multiplied by the result of the per occurrence dollar amounts taken
from the Tier 2 Payment Table to determine the payment to the State.
Performance Measurements for which Tier 2 Payment is Per Measure:
For each performance measurement where Owest fails to meet the standard
the payment to the State Fund shall be the dollar amount shown on the "per
measure" portion of the Tier 2 Payment Table.
10.Low Volume, Developing Markets
10.For certain qualifying performance standards, if the aggregate monthly
volumes of CLECs participating in the PAP are more than 10, but less than 100
Owest will make Tier 1 payments to CLECs for failure to meet the parity or
benchmark standard for the qualifying performance sub-measurements. The
qualifying sub-measurements are the UNE-P (POTS), megabit resale , and ADSL
qualified loop product disaggregation of OP-, OP-, OP-, MR-, MR-5, MR-, and
MR-8. If the aggregate monthly CLEC volume is greater than 100, the provisions of
this section shall not apply to the qualifying performance sub-measurement.
10.The determination of whether Owest has met the parity or benchmark
standards will be made using aggregate volumes of CLECs participating in the PAP.
In the event Owest does not meet the applicable performance standards , a total
payment to affected CLECs will be determined in accordance with the high, medium
low designation for each performance measurement (see Attachment 1) and
described in section 8., except that CLEC aggregate volumes will be used. In the
event the calculated total payment amount to CLECs is less than $5 000 , a minimum
payment of $5 000 shall be made. The resulting total payment amount to CLECs will
be apportioned to the affected CLECs based upon each CLEC's relative share of the
number of total service misses.
10.At the six (6)-month reviews, Owest will consider adding to the above list of
qualifying performance sub-measurements new products disaggregation
representing new modes of CLEC entry into developing markets.
11.Payment
11.Payments to CLEC, the State , or the Special Fund shall be made one month
following the due date of the performance measurement report for the month for
which payment is being made. Owest will pay interest on any late payment and
underpayment at the prime rate as reported in the Wall Street Journal. On any
overpayment, Owest is allowed to offset future payments by the amount of the
overpayment plus interest at the prime rate.
Qwest IdahoSGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 12-
Exhibit K
11.Payment to CLEC shall be made via bill credits. Bill credits shall be identified
on a summary format substantially similar to that distributed as a prototype to the
CLECs and the Commissions. To the extent that a monthly payment owed to CLEC
under this PAP exceeds the amount owed to Owest by CLEC on a monthly bill
Owest will issue a check or wire transfer to CLEC in the amount of the overage.
Payment to the State shall be made via check or wire transfer.
11.3 A Special Fund shall be created for the purpose of payment of an
independent auditor and audit costs as specified in section 15.0 and payment of
other expenses incurred by tire participating Commissions in the regional
administration of the PAP.
11.1 Owest shall establish the Special Fund as an interest bearing escrow account
upon the first FCC section 271 approval of the PAP applicable to a participating state
Commission. Owest shall be authorized to withhold and deposit into the Special
Fund one-half of all Tier 2 payments. The cost of the escrow account will be paid
for from account funds.
11.2 Commissions participating in the Special Fund shall appoint a person
designated to administer and authorize disbursement of funds. All claims against the
fund shall be presented to the Commissions' designates and shall be the
responsibility of the participating Commissions.
11.3 Owest shall advance funds to meet initial claims against the Special Fund to
the extent Tier 2 contributions are insufficient. Such funds shall not exceed $500 000
and shall be reduced appropriately in the event that at least six states in which the
OPAP is in effect do not agree to participate in the Special Fund. Upon a
determination by the participating Commissions that the Special Fund has become
self-sustaining or is no longer required Owest shall be allowed to recover any such
advances plus interest at the rate that the escrow account would have earned.
11.3.4 Upon the execution of a memorandum of understanding with the Idaho
Commission Owest shall establish an Idaho Discretionary Fund as a separate
interest bearing escrow account. Owest shall deposit into the Discretionary Fund the
remaining balance of Tier 2 payments after disbursement of Tier 2 payments to the
Special Fund pursuant to section 13.1. The Commission shall appoint a person
designated to administer and authorize disbursements of funds from the
Discretionary Fund. Disbursements from the Discretionary Fund shall be limited to
competitively neutral Idaho telecommunications initiatives. The costs of the
Discretionary Fund will paid for from the account's funds.
12.Cap on Tier 1 and Tier 2 Payments
12.There shall be a cap on the total payments made by Owest for a 12 month
period beginning with the effective date of the PAP for the State of Idaho. The
Qwest Idaho SGA T Third Revised, Fifth Amended Exhibit K, November 30, 2004 - 13-
Exhibit K
annual cap for the State of Idaho. shall be 36% of ARMIS Net Return , recalculated
each year based upon the prior year s Idaho ARMIS results , subject to any
applicable adjustment permitted pursuant to section 12.2. Owest shall submit to the
Commission the calculation of each year s cap no later than 30 days after submission
of ARMIS results to the FCC. CLEC agrees that this amount constitutes a maximum
annual cap that shall apply to the aggregate total of Tier 1 liquidated damages
including any such damages paid pursuant to this Agreement, any other
interconnection agreement, or any other payments made for the same underlying
activity or omission under any other contract, order or rule and Tier 2 assessments or
payments made by Owest for the same underlying activity or omission under any
other contract, order or rule.
12.The 36% annual cap may be increased to 44% or decreased to 30% of
ARMIS Net Return as follows:
12.1 An increase in the cap of a maximum of 4 percentage points at anyone time
(Le:, first to 40 percent) shall occur upon order by the Commission if the cap has
been exceeded for any consecutive period of 24 months by that same 4 percent or
more, provided that: (a) the Commission has determined that the preponderance of
the evidence shows Owest could have remained beneath the cap through
reasonable and prudent effort, and (b) the Commission has made that determination
after having available to it on the record the results of audits and root cause
analyses, and provided an opportunity for Owest to be heard.
12.2 A decrease in the cap of a maximum of 4 percentage points at anyone time
shall occur upon order by the Commission after performance for any consecutive
period of 24 months in which total payments are 8 or more percentage points below
the cap amount, provided that: (a) the Commission has determined that the
preponderance of the evidence shows the performance results underlying those
payments results from an adequate Owest commitment to meeting its responsibilities
to provide adequate wholesale service and to keeping open its local markets and (b)
the Commission shall have made that determination after providing all interested
parties an opportunity to be heard.
12.3 The provisions of 12.1 and 12.2 shall be in effect for the next 24 month
period commencing with the end of the 24 month period upon which the
Commission s order is based.
12.If the annual cap is reached , each CLEC shall , as of the end of the year, be
entitled to receive the same percentage of its total calculated Tier 1 payments.
order to preserve the operation of the annual cap, the percentage equalization shalltake place as follows:
12.1 The amount by which any month'total year-to-date Tier 1 and Tier 2
payments exceeds the cumulative monthly cap (defined as 1/1ih of the annual cap
times the cumulative number bf months to date) shall be calculated and apportioned
Qwest Idaho SGAT Third Revised , Fifth Amended Exhibit K, November 30 2004 - 14-
Exhibit K
between Tier 1 and Tier 2 according to the percentage that each bore of total
payments for the year-to-date. The Tier 1 apportionment resulting of this calculation
shall be known as the "Tracking Account."
12.2 The Tier 1 apportionment shall be debited against the monthly payment due
to each CLEC , by applying to the year-to-date payments received by each the
percentage necessary to generate the required total Tier 1 amount.
12.3 The Tracking Amount shall be apportioned among all CLECs so as to provide
each with payments equal in percentage of its total year to date Tier 1 payment
calculations.
12.3.4 This calculation shall take place in the first month that the year-to-date total
Tier 1 and Tier 2 payments are expected to exceed the cumulative monthly cap and
for each month of that year thereafter. Owest shall recover any debited amounts by
reducing payments due to any CLEC for that month and any succeeding months, as
necessary .
13.Limitations
13.The PAP shall not become available in the State unless and until Owest
receives effective section 271 authority from the FCC for that State.
13.Owest will not be liable for Tier 1 payments to CLEC in an FCC approved
state until the Commission has approved an interconnection agreement between
CLEC and Owest which adopts the provisions of this PAP.
13.Owest shall not be obligated to make Tier 1 or Tier 2 payments for any
measurement if and to the extent that non-conformance for that measurement was
the result of any of the following: 1) with respect to performance measurements with
a benchmark standard, a Force Majeure event as defined in section 5.7 of the SGAT.
Owest will provide notice of the occurrence of a Force Majeure event within 72 hours
of the time Owest learns of the event or within a reasonable time frame that Owest
should have learned of it; 2) an act or omission by a CLEC that is contrary to any of
its obligations under its interconnection agreement with Owest or under federal or
state law; an act or omission by CLEC that is in bad faith. Examples of bad faith
conduct include , but are not limited to: unreasonably holding service orders and/or
applications, "dumping" orders or applications in unreasonably large batches,
dumping" orders or applications at or near the close of a business day, on a Friday
evening or prior to a holiday, and failing to provide timely forecasts to Owest for
services or facilities when such forecasts are explicitly required by the SGAT; 3)
problems associated with third-party systems or equipment, which could not have
been avoided by Owest in the exercise of reasonable diligence provided, however
that this third party exclusion will not be raised in the State more than three times
within a calendar year. If a Force Majeure event or other excusing event recognized
Qwest Idaho SGA T Third Revised, Fifth Amended Exhibit K, November 30, 2004 - 15-
Exhibit K
in this section merely suspends Owest's ability to timely perform an activity subject to
a performance measurement that is an interval measure, the applicable time frame in
which Owest's compliance with the parity or benchmark criterion is measured will be
extended on an hour-for-hour or day-for-day basis , as applicable, equal to the
duration of the excusing event.
13.1 Owest will not be excused from Tier 1 or Tier 2 payments for any reason
except as described in Section 13.0. Owest will have the burden of demonstrating
that its non-conformance with the performance measurement was excused on one of
the grounds described in this PAP. A party may petition the Commission to require
awes! to deposit disputed payments into an escrow account when the requesting
party can show cause , such as grounds provided in the Uniform Commercial Code
for cases of commercial uncertainty.
13.2 Notwithstanding any other provision of section 13 of this OPAP , Owest shall
not be excused for failing to provide such performance that Owest could reasonably
have been expected to deliver assuming that it had designed , implemented , staffed
provisioned , and otherwise provided for resources reasonably required to meet
foreseeable volumes and patterns of demands upon its resources by CLECs.
13.4 Owest's agreement to implement these enforcement terms, and specifically
its agreement to pay any "liquidated damages" or "assessments" hereunder, will not
be considered as an admission against interest or an admission of liability in any
legal , regulatory, or other proceeding relating in whole or in part to the same
performance.
13.4.1 CLEC may not use: 1) the existence of this enforcement plan; or 2) Owest's
payment of Tier -1 "liquidated damages" or Tier 2 "assessments" as evidence that
Owest has discriminated in the provision of any facilities or services under Sections
251 or 252, or has violated any state or federal law or regulation. Owest's conduct
underlying its performance measures , however are not made inadmissible by its
terms.
13.4.2 By accepting this performance remedy plan CLEC agrees that Owest's
performance with respect to this remedy plan may not be used as an admission of
liability or culpability for a violation of any state or federal law or regulation. (Nothing
herein is intended to preclude Owest from introducing evidence of any Tier 1
liquidated damages" under these provisions for the purpose of offsetting the
payment against any other damages or payments a CLEC might recover.) The terms
of this paragraph do not apply to any proceeding before the Commission or the FCC
to determine whether Owest has met or continues to meet the requirements of
section 271 of the Act.
Qwest Idaho SGA T Third Revised , Fifth Amended Exhibit K, November 30, 2004 - 16-
Exhibit K
13.By incorporating these liquidated damages terms into the PAP, Owest and
CLEC accepting this PAP agree that proof of damages from any non-conforming
performance measurement would be difficult to ascertain and, therefore, liquidated
damages are a reasonable approximation of any contractual damages that may
result from a non-conforming performance measurement. Owest and CLEC further
agree that Tier 1 payments made pursuant to this PAP are not intended to be a
penalty. The application of the assessments and damages provided for herein is not
intended to foreclose other noncontractual legal and non-contractual regulatory
claims and remedies that may be available to a CLEC.
13.This PAP contains a comprehensive set of performance measurements
statistical methodologies, and payment mechanisms that are designed to function
together, and only together, as an integrated whole. To elect the PAP, CLEC must
adopt the PAP in its entirety, in its interconnection agreement with Owest. By
electing remedies under the PAP , CLEC waives any causes of action based on a
contractual theory of liability, and any right of recovery under any other theory of
liability (including but not limited to a state utility regulatory commission or Federal
Communications Commission rule or order) to the extent such recovery is related to
harm compensable under a contractual theory of liability (even though it is sought
through a noncontractual claim , theory, or cause of action).
13.
If for any reason a CLEC agreeing to this OPAP is awarded compensation for the
same harm for which it received payment under the OPAP , the court or other
adjudicatory body hearing such a claim may offset the damages resulting from such
claim against payments made for the same harm.
13.Owest shall not be liable for both Tier 2 payments under the PAP and
assessments, sanctions, or other payments for the same underlying activity or
omission pursuant to any Commission order or service quality rules.
13.Whenever a Owest Tier 1 payment to an individual CLEC exceeds $3 million
in a month , Owest may commence a proceeding to demonstrate why it should not be
required to pay any amount in excess of the $3 million. Upon timely commencement
of the proceeding, Owest must pay the balance of payments owed in excess of $3
million into escrow, to be held by a third-party pending the outcome of the
proceeding. To invoke these escrow provisions , Owest must file, not later than the
due date of the Tier 1 payments , its application. Owest will have the burden of proof
to demonstrate why, under the circumstances, it would be unjust to require it to make
the payments in excess of $3 million. If Owest reports non-conforming performance
to CLEC for three consecutive months on 20% or more of the measurements
reported to CLEC and has incurred no more than $1 million in liability to CLEC, then
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 17-
Exhibit K
CLEC may commence a similar proceeding. In any such proceeding CLEC will have
the burden of proof to demonstrate why, under the circumstances, justice requires
Owest to make payments in excess of the amount calculated pursuant to the terms of
the PAP. The disputes identified in this section shall be resolved in a manner
specified in the Dispute Resolution section of the SGA T with the CLEC.
14.Reporting
14.Upon receiving effective section 271 authority from the FCC for a state,
Owest will provide CLEC that has an approved interconnection agreement with
Owest, a monthly report of Owest's performance for the measurements identified in
the PAP by the last day of the month following the month for which performance
. results are being reported. However Owest shall have a grace period of five
business days, so that Owest shall not be deemed out of compliance with its
reporting obligations before the expiration of the five business day grace period.
Owest will collect, analyze , and report performance data for the measurements listed
on Attachment 1 in accordance with the most recent version of the PIDs. Upon
CLEC's request, data files of the CLEC's raw data , or any subset thereof, will be
transmitted, without charge , to CLEC in a mutually acceptable format, protocol , and
transmission medium.
14.Owest will also provide the Commission a monthly report of aggregate CLEC
performance results pursuant to the PAP by the last day of the month following the
month for which performance results are being reported. However, Owest shall have
a grace period of five business days , so that Owest shall not be deemed out of
compliance with its reporting obligations before the expiration of the five business day
grace period. Individual CLEC reports of participating CLECs will also be available to
the Commission upon request. By accepting this PAP , CLEC consents to Owest
providing CLEC's report and raw data to the State Commission. Pursuant to the
terms of an order of the Commission, Owest may provide CLEC-specific data that
relates to the PAP, provided that Owest shall first initiate any procedures necessary
to protect the confidentiality and to prevent the public release of the information
pending any applicable Commission procedures and further provided that Owest
provides such notice as the Commission directs to the CLEC involved, in order to
allow it to prosecute such procedures to their completion. Data files of participating
CLEC raw data, or any subset thereof, will be transmitted, without charge, to the
Commission in a mutually acceptable format, protocol , and transmission form.
14.In the event Owest does not provide CLEC and the Commission with a
monthly report by the last day of the month following the month for which
performance results are being reported, Owest will pay to the State a total of $500 for
each business day for which performance reports are 6 to 10 business days past the
due date; $1 000 for each business day for which performance reports are 11 to 15
Qwest Idaho SGAT Third Revised , Fifth Amended Exhibit K, November 30 2004 - 18-
Exhibit K
business days past the due date; and $2 000 for each business day for which
performance results are more than 15 business days past the due date. If reports
are on time but are missing performance results, Owest will pay to the State a total of
one-fifth of the late report amount for each missing performance measurement
subject to a cap of the full late report amount. These amounts represent the total
payments for omitting performance measurements or missing any report deadlines
rather than a payment per report. Prior to the date of a payment for late reports
Owest may file a request for a waiver of the payment, which states the reasons for
the waiver. The Commission may grant the waiver, deny the waiver, or provide any
other relief that may be appropriate.
14.4 To the extent that Owest recalculates payments made under this PAP, such
recalculation shall be limited to the preceding three years (measured from the later of
the provision of a monthly credit statement or payment due date). Owest shall retain
sufficient records to demonstrate fully the basis for its calculations for long enough to
meet this potential recalculation obligation. CLEC verification or recalculation efforts
should be made reasonably contemporaneously with Owest measurements. In any
event, Owest shall maintain the records in a readily useable format for one year. For
the remaining two years, the records may be retained in archived format. Any
payment adjustments shall be subject to the interest rate provisions of section 11.
15.Integrated Audit Programllnvestigations of Performance Results
15.Audits of the PAP shall be conducted in a two-year cycle under the auspices
of the participating Commissions in accordance with a detailed audit plan developed
by an independent auditor retained for a two-year period. The participating
Commissions shall select the independent auditor with input from Owest and CLECs.
15.1 The participating Commissions shall form an oversight committee of
Commissioners who will choose the independent auditor and approve the audit plan.
Any disputes as to the choice of auditor or the scope of the audit shall be resolved
through a vote of the chairs of the participating commissions pursuant to Section
15.1 .4.
15.2 The audit plan shall be conducted over two years. The audit plan will identify
the specific performance measurements to be audited , the specific tests to be
conducted, and the entity to conduct them. The audit plan will give priority to auditing
the higher risk areas identified in the ass report. The two-year cycle will examine
risks likely to exist across that period and the past history of testing, in order to
determine what combination of high and more moderate areas of risk should be
examined during the two-year cycle. The first year of a two-year cycle will
concentrate on areas most likely to require follow-up in the second year.
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 19-
Exhibit K
15.3 The audit plan shall be coordinated with other audit plans that may be
conducted by other state commissions so as to avoid duplication , shall not impede
Owest's ability to comply with the other provisions of the PAP and should be of a
nature and scope that can be conducted in accordance with the reasonable course of
Owest's business operations.
15.1.4 Any dispute arising out of the audit plan , the conduct of the audit, or audit
results shall be resolved by the oversight committee of Commissioners. Decisions of
the oversight committee of Commissioners may be appealed to a committee of the
chairs of the participating Commissions.
15.Owest may make management processes more accurate or more efficient to
perform without sacrificing accuracy. These changes are at Owest's discretion but
will be reported to the independent auditor in quarterly meetings in which the auditor
may ask questions about changes made in the Owest measurement regimen. The
meetings, which will be limited to Owest and the independent auditor, will permit an
independent assessment of the materiality and propriety of any Owest changes,
including, where necessary, testing of the change details by the independent auditor.
The information gathered by the independent auditor may be the basis for reports bythe independent auditor to the participating Commissions and, where the
Commissions deem it appropriate, to other participants.
15.In the event of a disagreement between Owest and CLEC as to any issue
regarding the accuracy or integrity of data collected , generated, and reported
pursuant to the PAP, Owest and the CLEC shall first consult with one another and
attempt in good faith to resolve the issue. If an issue is not resolved within 45 days
after a request for consultation , CLEC and Owest may, upon a demonstration of good
cause , (e., evidence of material errors or discrepancies) request an independent
audit to be conducted, at the initiating party s expense. The independent auditor will
assess the need for an audit based upon whether there exists a material deficiency in
the data or whether there exists an issue not otherwise addressed by the audit plan
for the current cycle. The dispute resolution provision of section 18.0 is available to
any party questioning the independent auditor s decision to conduct or not conduct a
CLEC requested audit and the audit findings, should such an audit be conducted. An
audit may not proceed until dispute resolution is completed. Audit findings will
include: (a) general applicability of findings and conclusions (Le., relevance to
CLECs or jurisdictions other than the ones causing test initiation), (b) magnitude of
any payment adjustments required and, (c) whether cost responsibility should be
shifted based upon the materiality and clarity of any Owest non-conformance with
measurement requirements (no pre-determined variance is appropriate , but should
be based on the auditor s professional judgment). CLEC may not request an audit of
data more than three years from the later of the provision of a monthly credit
statement or payment due date.
Qwest Idaho SGA T Third Revised , Fifth Amended Exhibit K, November 30, 2004 - 20-
Exhibit K
15.4 Expenses for the audit of the PAP and any other related expenses, except
that which may be assigned under section 15., shall be paid first from the Tier 2
funds in the Special Fund. For Idaho, the remainder of the audit expenses will be
paid by Owest.
15.Owest will investigate any second consecutive Tier 2 miss to determine the
cause of the miss and to identify the action needed in order to meet the standard set
forth in the performance measurements. To the extent an investigation determines
that a CLEC was responsible in whole or in part for the Tier 2 misses, Owest shall
receive credit against future Tier 2 payments in an amount equal to the Tier 2
payments that should not have been made. The relevant portion of subsequent Tier
2 payments will not be owed until any responsible CLEC problems are corrected. For
the purposes of this sub-section , Tier 1 performance measurements that have not
been designated as Tier 2 will be aggregated and the aggregate results will be
investigated pursuant to the terms of this Agreement.
16.Reviews
16. 1 Every six (6) months, beginning six months after the effective date of section
271 approval by the FCC for the state of Idaho, Owest, CLECs, or the Idaho Public
Utilities Commission may initiate a review of the performance measurements to
determine whether measurements should be added , deleted, or modified; whether
the applicable benchmark standards should be modified or replaced by parity
standards; and whether to move a classification of a measurement to High , Medium
or Low, Tier 1 or Tier 2. The criterion for reclassification of a measurement shall be
whether the actual volume of data points was less or greater than anticipated.
Criteria for review of performance measurements, other than for possible
reclassification, shall be whether there exists an omission or failure to capture
intended performance, and whether there is duplication of another measurement. Any
disputes regarding adding, deleting, or modifying performance measurements shall
be resolved pursuant to a proceeding before the Commission and subject to judicial
review. No new performance measurements shall be added to this PAP that have
not been subject to observation as diagnostic measurements for a period of 6
months. Any changes made at the six-month review pursuant to this section shall
apply to and modify this agreement between Owest and CLEC, subject to a stay,
modification or reversal upon appeal or judicial review.
16.Notwithstanding section 16., if any agreements on adding, modifying
or deleting performance measurements as permitted by section 16.1 are reached
between Owest and CLECs participating in an industry Regional Oversight
Committee (ROC) PID administration forum, those agreements shall be incorporated
into the OPAP and modify the agreement between CLEC and Owest at any time
those agreements are submitted to the Commission , whether before or after a six-
month review.
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30,2004 - 21-
Exhibit K
16.For the first twelve months that any changes made pursuant to paragraphs
16.1 or 16.1 are in effect, Owest's liability for such changes shall be limited to 10%
of the monthly payments that Owest would have made absent the effect of such
changes as a whole. This provision shall be referred as "the 10% payment collar.
Such payment limitation shall be accomplished by factoring the payments resulting
from the changes to ensure that such payments remain within 10% of the payments
Owest would have made absent such changes.
16.In the event that the Commission adds, modifies, or reclassifies a
performance measurement that has not been agreed. upon in the ROC PID
administration forum process in 16., the 10% payment collar shall remain in effect
unless removed by the Commission pursuant to this section. If; after a minimum of 6
months of payments to a CLEC, Owest's payments have been limited by the 10%
payment collar to 80% or less of what the total payments would have been absent
the collar for the preceding 6:-month period , the Commission may, upon motion by an
affected CLEC , conduct a record proceeding to determine whether the 10% payment
collar should be removed from any such performance measure. The Commission
can prospectively remove the 10% collar for Tier 1 payments to affected CLEC(s) for
any such performance measure upon a demonstration through a record proceeding
and a Commission determination that the total payments to the CLEC(s) under the
OPAP were inadequate to compensate CLEC(s) for actual harm incurred during the
same period and upon a determination that such change is otherwise necessary and
appropriate and in the public interest.
16.Two years after the effective date of the first FCC 271 approval of the PAP
the participating Commissions may conduct a joint review by a independent third
party to examine the continuing effectiveness of the PAP as a means of inducing
compliant performance. This review shall not be used to open the PAP generally to
amendment, but would serve to assist Commissions in determining existing
conditions and reporting to the FCC on the continuing adequacy of the PAP to serve
its intended functions. The expense of the reviews shall be paid from the Special
Fund.
16.Owest will make the PAP available for CLEC interconnection agreements
until such time as awes! eliminates its Section 272 affiliate. At that time, the
Commission and Owest shall review the appropriateness of the PAP and whether its
continuation is necessary. However, in the event Owest exits the interLATA market
that State PAP shall be rescinded immediately.
17.Voluntary Performance Assurance Plan
This PAP represents Owest's voluntary offer to provide performance assurance.
Nothing in the PAP or in any conclusion of non-conformance of Owest's service
performance with the standards defined in the PAP shall be construed to be, of itself
non-conformance with the Act.
Qwest Idaho SGAT Third Revised , Fifth Amended Exhibit K, November 30 2004 - 22-
Exhibit K
18.Dispute Resolution
For the purpose of resolving disputes over the meaning of the provisions of the PAP
and how they should be applied, the dispute resolution provisions of the SGAT
section 5., shall apply whether the CLEC uses the SGAT in its entirety or elects to
make the PAP part of its interconnection agreements (Le., the unique dispute
resolution provisions of interconnection agreements should not apply)..
Qwest Idaho SGAT Third Revised , Fifth Amended Exhibit K, November 30 2004 - 23-
Exhibit K
Attachment 1: Tier 1 and Tier 2 Performance Measurements Subject to Per Occurrence
Payment
Performance Measurement Tier 1 Payments Tier 2 Payments
Low Med Low Med High
High
GA TEWA Y
Timely Outage Resolution GA-
PRE-ORDER/ORDERS
LSR Reiection Notice Interval PO-
Firm Order Confirmations On Time PO-
Work Completion Notification Timeliness PO-
Billing Completion Notification Timeliness PO-
Jeopardy Notice Interval PO-
Timely Jeopardy Notices PO-
Release Notifications PO-
(Expanded)Manual Service Order PO-20c
Accuracy
ORDERING AND PROVISIONING
Installation Commitments Met OP-
Installation Intervals OP-
New Service Quality OP-
Delayed Days OP-
Number Portability Timeliness OP-
Coordinated Cuts On Time -Unbundled OP-13a
Loops
LNP Disconnect Timeliness OP-
MAINTENANCE AND REPAIR
Out of Service Cleared within 24 hours MR-
All Troubles Cleared within 4 hours MR-
Mean time to Restore MR-
Repair Repeat Report Rate MR-
Trouble Rate MR-
LNP Trouble Reports Cleared within 24 MR-
Hours
LNP Trouble Reports-Mean Time MR-
Restore
BILLING
Time to Provide Recorded Usage Records BI-
Billing Accuracy-Adjustments for Errors BI-
Billing Completeness BI-4
NETWORK PERFORMANCE
Trunk Blocking NI-
NXX Code Activation NP-
Qwest Idaho SGA T Third Revised, Fifth Amended Exhibit K, November 30, 2004 - 24-
Exhibit K
a. PO-3 is limited to PO-3a-, PO-3b-, and PO-3c.
b. PO-6 is included with PO-7 as two "families:" PO-6a/PO-7a and PO-6b/PO-7b. Measurements within
each family share a single payment opportunity with only the measurements with the highest payment being
paid.
c. Low Volume Exception: In lieu of Section 2.4 for PO-, where GLEG order volumes for a given month
are less than 17 in Phase 1 , less than 13 in Phase 2 , and less than 10 in Phase 3 and subsequent phases,
a benchmark standard of "no more than one order with PO-20 errors" is applied. Under this provision, no
payment applies if there is only one order with errors.
Stabilization Period: For each phase beginning with Phase 1 , there will be no more than a 3-month
measurement stabilization period for all fields introduced in that phase. Performance results that include all
such fields are not subject to payments during the measurement stabilization period.
d. OP-4 is included with OP-6 as five "families:" OP-4aIOP-, OP-4b/OP-, OP-4c/OP-, OP-4d/OP-
, and OP-4e/OP-5. Measurements within each family share a single payment opportunity with only the
measurement with the highest payment being paid.
e. Low volume treatment for OP-5b will apply if both (1) the GLEG volume of orders is less than or equal to
29 (the denominator of OP-5t) and (2) the number of orders with trouble in OP-5a is no more than one.
When these two conditions are met, a standard of no more than one order with new service trouble applies.
f. For purposes of the PAP, OP-6a and OP-6b will be combined and treated as one. The combined OP-
breaks down to OP-1 (within MSA), OP-2 (outside MSA), OP-3 (no dispatch), OP-4 (zone 1), and
OP-5 (zone 2).
g. Applicable only to xDSL-1 capable loops.
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 25-
Exhibit K
Billing
Attachment 2: Performance Measurements Subject to Per Measurement Caps
Time to Provide Recorded Usage Records - BI-1 (Tier 1/Tier 2)
Billing Accuracy - Adjustments for Errors - BI-(Tier 1)
Billing Completeness - BI-(Tier 1/Tier 2)
Qwest Idaho SGAT Third Revised, Fifth Amended Exhibit K, November 30 2004 - 26-
EXHIBIT L
ADVICE ADOPTION LETTER
Manager InterconnectionOwest
1801 California , Room 2410
Denver, CO 80202
Re: Owest Corporation ("Owest") New Product:
Dear Sir or Madam:
By its signature below
, ("
CLEC") hereby agrees to
be bound by the rates, terms and conditions that Owest has offered and provided on its
Web Site for the New Owest Product identified above as an amendment to its
Interconnection Agreement with Qwest for the state(s) of
CLEC certifies that the rates, terms, and conditions contained on Attachment A
(attached hereto) are the rates , terms and conditions contained on Owest's web site that
have been provided for the New Product identified above.
CLEC
By:
Title:
Date:
Owest 10 October 4, 2004
EXHIBIT M
INTERIM ADVICE ADOPTION LETTER
Manager Interconnection
Owest
1801 California , Room 2410
Denver, CO 80202
Re: Owest Corporation ("awesf') New Product:
Dear Sir or Madam:
By its signature below
, ("
CLEC") hereby
agrees to be bound by the rates , terms and conditions that Owest has offered
and provided on its Web Site for the New Owest Product identified above as an
interim amendment to its Interconnection Agreement with Owest for the state(s)cl
CLEC certifies that the rates, terms , and conditions contained on
Attachment A (attached hereto) are the rates, terms and conditions contained on
Owest's web site that have been provided for the New Product identified above.
Owest acknowledges that CLEC believes that the rates , terms and
conditions for the Owest New Product should be altered and that CLEC enters
into this Interim Advice Adoption Letter with the express intention to renegotiate
the rates, terms and conditions associated with the Owest New Product pursuant
to the terms of Section 1.2 of the SGAT. CLEC enters into this Interim
Advice Adoption Letter without prejudice to or waiver of any of its rights to
challenge the terms and conditions of this Interim Advice Adoption Letter under
the Interconnection Agreement, the Act, FCC or state Commission rules.
CLEC
By:
Title:
Date:
Qwest All States October 4, 2004 Page 1